ORDER
P.G. Chacko, Member (J)
1. After hearing both sides and considering their submissions, I note that the lower authorities have denied CENVAT credit on “outward freight” incurred for transportation of finished goods from factory to the premises of dealers /customers, to the appellants for the period July 05-June 06. They have also imposed a penalty of Rs. 5000/- on them.
2. The question whether outward transportation of finished goods from factory was an “input service” defined under the CENVAT Credit Rules, 2004 was examined in detail by the Division Bench in the case of India Japan Lighting Pvt. Ltd. v. CCE, Chennai 2007 (8) S.T.R. 124 (Tri.-Chennai) : 2007 (218) E.L.T. 103 (Tribunal) and the issue was held against the assessee. The authorized representative of the appellants submits today that identical issue was referred to Larger Bench by the South Zonal Bench at Bangalore in the case of India Cements Ltd v. CCE, Tirupati 2007 (8) S.T.R. 43 (Tribunal) : 2007 (216) E.L.T. 81 (Tribunal).
3. On a perusal of the referral order cited by the company’s representative, I note that the Bench had no occasion to consider the reasoning adopted by the Chennai Bench in India Japan Lighting case. Sitting singly, I have got to follow the view taken by the Division Bench at Chennai. Accordingly, I think that the appellants have no prima facie case against the above demand. As they have not pleaded financial hardships in the present application, I direct them to predeposit the entire amount of duty within 4 weeks and report compliance on 4-4-2008.
4. In the event of due compliance, there will be waiver of predeposit and Stay of recovery in respect of the penalty amount.
(Dictated and pronounced in open Court)